OnDeck Capital (Updated for 2021) Reviews - Financial Lender Pros & Cons

With funding amounts ranging from $15,000 to 500,000, OnDeck provides business loans for small businesses in need of quick financing. Recently acquired by Enova, this lender delivers speed and convenience, with loan offers even for borrowers with less than stellar credit profiles.

Company Profile

OnDeck was founded in 2006, bringing efficient and convenient access small business financing online. OnDeck reviews show that by leveraging data analytics, OnDeck can get past standard credit ratings when determining a client’s creditworthiness by analyzing thousands of data points when qualifying them for a business loan.

Borrowers appreciate the simple online application and impressive customer service, ensuring that they are able to pursue their short and long term business goals with flexible financing for almost any purpose.

Credit Policy

Compared to traditional lenders, OnDeck has looser qualification requirements and faster approvals. When applying for a business loan from OnDeck, borrowers can submit an application in just a few short steps and likely receive their business loan approval within a few hours.

Simply fill out the included fields with business and personal details, a description of the loan request, and recent bank statements.

To qualify for a loan, OnDeck does have some minimum criteria. These include:

• FICO score of 600 or higher
• Time in business 12 months
• $8,000 minimum deposit volume

Small businesses loan applicants meeting these criteria will receive offers based on the information provided, including approved loan amount, term, and interest rate.

Exceptions

OnDeck offers standard financing options and eligibility criteria, but will consider exceptions. Borrowers must not have more than $10,000 in tax liens to be considered. In addition, the lender allows loans to be paid off up to two positions. For loan amounts not exceeding $75,000 and terms less than 12 months, weekly repayment options are available.

Unlike other small business lenders, OnDeck is often willing to fund legal practices.

Cautionary Industries

OnDeck is a flexible online lender with looser qualification criteria than many traditional lenders, however, there are certain industries that will not be eligible for business financing. Businesses in these industries are considered more volatile for the lender and will have to seek small business loan solutions elsewhere.

Business in these sectors will not be approved:

• Auto sales
• Financial services and investment firms
• Pawnshops
• Telemarketing
• Payroll companies
• Personal trainers
• Call centers
• Gun shops
• Travel agencies
• Farming
• Funeral services

Target Market

Growing a small business often requires an infusion of cash. Without working capital, gaps in cashflow or unexpected expenses are difficult to overcome, and with poor credit, many small businesses struggle to qualify for traditional bank loans.

OnDeck offers fast financing for businesses for most related purposes. From irregular cash flow to purchase equipment, hiring staff, or tax liability, OnDeck is a good solution for businesses in the following industries:

• Healthcare
• Restaurants
• Wholesale
• Manufacturing
• Retail
• General contractors
• Specialty trade contractors
• Automotive services

Within the construction industry, OnDeck does not make loans to general contractors, but does lend to subcontractors, such as plumbers, electricians, and carpenters.

Term Length

The majority of business loans from OnDeck carry terms ranging from 6 to 18 months. In certain exceptional cases, longer terms are possible. These range from 24 to 36 months.

What’s Required to Apply

OnDeck is a reputable online lender delivering streamlined and speedy financing with technologically enhanced qualification. The application form requests some basic business details to assess eligibility:

• Applicant’s name
• Applicant’s phone number and email address
• Registered business name
• Total monthly business revenue
• Amount requested
• 6 months of business bank statements
• Tax ID number (EIN)
• Social Security number
• Estimated annual gross revenue
• Average bank balance
• Digitally or manually signed application form

It takes less than ten minutes to complete the online application, however applications can also be made by phone. Once all of the necessary documents are received and the application is processed and approved, funds will generally be transferred within one business day.

Factor Rates

Standard loans typically express interest as a percentage. Factor rates are decimal figures representing the amount borrowers will need to pay on top of the principal. Multiplying the factor rate by the advance amount and adding the two will give borrowers an idea of the business loan’s cost.

OnDeck business loan interest rates generally range from 1.11 to 1.23.

Stacking

OnDeck does not offer loans to businesses already carrying multiple active loans. Stacked loans are higher risk and come with higher buy rates and fees. Businesses with other loans and seeking additional financing will need to find a different lender.

Documentation Fees

Filing and processing loan applications is often associated with a fee. One of the benefits of OnDeck is that it offers a zero documentation fee application process.

Origination Fees

Origination fees are associated with processing and issuing loans, and are calculated as a percentage of the financing amount. When borrowing from OnDeck, applicants will pay 2.5% origination in the following states:

• California
• Nevada
• Vermont
• South Dakota
• North Dakota

In other states, OnDeck does not charge any origination fees.

Renewal Policy

Once a business has paid back at least 50% of an existing loan, it is eligible to apply for a loan renewal. OnDeck makes renewals more attractive by waiving any fees or outstanding interest on the original loan.

Interest Forgiveness

OnDeck offers favorable renewal terms that involve interest forgiveness on repayment and no prepayment fees. Because of their renewal policy, customers often fund multiple projects using business loans from OnDeck. Plus, return customers can earn rewards over time and benefit from better terms.

Loan Use

Businesses borrowing money from OnDeck are permitted to use the funds for any business related need. When cashflow crunches come or new opportunities arise, OnDeck customers can access the financing they need swiftly.

Some of the uses that OnDeck borrowers have found for their business loans include:

• Repairing equipment or machinery
• Purchasing equipment or machinery
• Hiring new personnel
• Purchasing inventory
• Expanding to new locations
• Implementing new technology
• Launching a marketing campaign

Online Reputation

Businesses seeking a loan from OnDeck will be impressed with this lender’s solid online presence and positive reputation. OnDeck reviews are generally positive and OnDeck is considered one of the more well known and respected companies in online lending today. OnDeck has an A+ rating with the Better Business Bureau and is ranked "Excellent" on TrustPilot with a score of 9.6 out of 10

OnDeck Contact Information:

• Phone: (888-269-4246)
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